THE HIDDEN COST OF HIDDEN HOTELS the facts

THE HIDDEN COST OF HIDDEN HOTELS
THE IMPACT OF VACATION RENTALS IN HAWAI‘I
the facts
advertised units” (IAUs) in Hawai‘i.
IAUs increased by 22% between 2014
and 2015.
79.6% of Airbnb listings are
for the entire place
50% of vacation rentals on
Oahu are illegal
Companies like Airbnb are
profiting
Lodging Company Valuations, 2015
Airbnb Hawai‘i Listings by Room Type
79.6%
That’s
Entire Place (79.6%)
Room or Share (20.4%)
5185 homes that could be
rented long-term to residents
Valuations (in billions of $)
Vacation Rentals in Hawai‘i
are growing
There are 27,177 “individually
$21
$25
billion
billion
$14
billion
$8.3
billion
the IMPACT
HOUSING
THE ECONOMY
NEIGHBORHOODS
“My mom worked 3 jobs to afford rent for
our 2 bedroom apartment. I’m constantly
worried about whether I can afford to live
here.”
—Aina Iglesias, UH Manoa student
“It is HLTA’s goal to establish a
level playing field for all visitor
accommodations.”
—Mufi Hannemann, Hawai‘i Lodging and
Tourism Association President & CEO
“How is it that I live in a neighborhood
that has both semi-empty vacation rental
houses and also one of the island’s
largest houseless communities?”
—Amanda Shaw, Waimanalo Resident
housing
•
•
•
•
•
the economy
6 reports have found that
Airbnb has a negative
impact on housing
neighborhoods
Number of vacation rentals
per housing unit:
Vacation rental guests
spend 36% less on lodging,
food, etc. than hotel guests
New York
San Francisco
Santa Monica
Penn State
Los Angeles Alliance for a New
Economy (LAANE)
• California Legislative Analysts’ Office
Hotel guests spend:
Vacation rental
guests spend:
$235.50
$149.90
/day
KOLOA
1 out of 2.5
KIHEI
1 out of 4.5
/day
Each hotel room on Oahu
brings over $8,000 per year
in state tax revenue
Airbnb drives up the price
of housing
Increase in rent of 1-bedroom
unit because of Airbnb:
in New York City: $288 /year
in San Francisco: $912 /year
$
KAHUKU
SCHOOL
1 out of 5
Less hotel rooms =
less good, local jobs
Many Airbnb hosts have
listings for multiple units
KAILUA-KONA
Oahu: Hosts with 5+ listings: 13
Oahu: Most listings by 1 host: 56
1 out of 8
what has been done
Allowed Airbnb to
be a tax broker
Status
Portland
90% of vacation rentals are illegal. Airbnb refused to release data on hosts to the
City. City threatened Airbnb with $930k fines for non-compliance in paying taxes.
San Francisco
86% of vacation rentals are illegal. Airbnb refused to release data on hosts to the
City. Airbnb was not remitting the correct amount of taxes and owed City $25m.
Airbnb is fighting City on requiring permit numbers to be placed on listings.
New York City
72% of vacation rentals are illegal. Airbnb refused to release data on hosts to the
City. Attorney General had to subpoena Airbnb for data. Airbnb removed 1500
listings before releasing data to City.
Virginia
Bills are currently being passed that would allow Airbnb to collect and remit taxes on
behalf of its hosts. They would forbid any localities from banning vacation rentals.
Senate bill was amended to require a year of study before the bill can take effect.
Hawaii
HB 1850 and SB2693 are currently being considered that would allow Airbnb to
collect and remit taxes on behalf of its hosts. It would supplant the Counties’ efforts
to enforce illegal vacation rentals.
what should be done
Enforce the laws first
Give enforcement agencies the
power to:
• Initiate investigations of potentially
illegal vacation rentals
• Use advertisements as evidence
that a vacation rental is operating
illegally
• Issue fines against both the host
and the online platform they
advertise on
Give neighbors power
to file suit
Give neighbors the power to:
• Sue the vacation rental operator
and/or the online hosting platform
• Collect attorneys’ fees and seek
damages
OPPOSE HB 1850 and
SB 2693
It doesn’t hold Airbnb responsible
for making sure their listings are
If members of the public file a
transparent, thus allowing Airbnb to
complaint to the enforcement agency collect and remit taxes without any
about a potentially illegal vacation
way of verifying that the amount
rental, the agency should have the
they remit is what they actually
duty to investigate and report back its owe. We need to ensure there is no
findings to the public.
preemption of existing County laws.
Airbnb has shown
over and over that they
disregard the law.
They do not cooperate
with cities.
AIRBNB
NEEDS TO
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